HC Deb 09 February 1976 vol 905 cc27-8
26. Mr. David Mitchell

asked the Secretary of State for Trade whether he is aware of the high level of bankruptcies and liquidations in recent months; and if he will take steps to alleviate the situation.

Mr. Clinton Davis

I am well aware of the high level of bankruptcies and insolvencies, which reflects the recession of the last year.

The Government have made clear their commitment to an expanding and profitable manufacturing sector, and to this end have taken steps to ensure that a greater share of our national resources is made available for productive investment.

Mr. Mitchell

Is the Minister aware that there is a shocking increase in these figures, and that a large proportion of the people concerned are self-employed or small business men? Is the Minister further aware that on Friday 30th January 1976, with support from both sides, this House carried a motion calling upon Her Majesty's Government to find means of alleviating the taxation and other burdens which threaten the existence of small businesses.

Will the Minister therefore take some more positive action—or ensure that his right hon. Friend the Chancellor of the Exchequer does—to bring us into line with the Resolution of the House.

Mr. Davis

The action to be taken to deal with this is a matter for my right hon. Friend the Chancellor of the Exchequer, but action has already been taken, as the hon. Gentleman will know. In a time of recession, difficulties of this kind inevitably follow. There has been a rise in unemployment. There has been a rise in liquidations and bankruptcies. I add only that if we were to follow the general strategy announced by the right hon. and learned Member for Surrey, East (Sir G. Howe) we should not be trying simply to get out of the wood, as we are trying to do; the nation would be entering a quicksand.

Mr. Ioan Evans

Does my hon. Friend agree that the problem in British industry is that too many people in manufacturing Industry are there to make money rather than goods? Is he aware, further, that there is a firm in my constituency—Sageways, Abercynon—which has a full order book and good industrial relations and yet the receiver has been put in this week to close down its factory?

Mr. Davis

My hon. Friend knows that that is not essentially a matter for me. If I were to engage in a dialogue with him along those lines 1 should be stopped by Mr. Speaker.